Fed's Harker Says Is Ready To Start Process Of Cutting Rates; Wants A Gradual, Methodical Course Of Rate Cuts; Current Monetary Policy In A Good Place, Not Overly Restrictive; End Of Easing Cycle May Put Funds Rate Around 3%; Business Contacts Favor Predictable Pace Of Easing; End Of Balance Sheet Drawdown Determined By Market
Portfolio Pulse from Benzinga Newsdesk
Philadelphia Fed President Patrick Harker suggests the Federal Reserve is prepared to begin cutting interest rates, advocating for a gradual and methodical approach. He believes the current monetary policy is well-positioned and not overly restrictive. Harker anticipates the end of the easing cycle could see the federal funds rate around 3%. Business contacts prefer a predictable pace of easing, and the end of the balance sheet drawdown will be market-determined.
August 22, 2024 | 1:41 pm
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The SPDR S&P 500 ETF (SPY) may be impacted by the Federal Reserve's potential rate cuts, as indicated by Fed's Harker. A gradual and predictable easing could support stock prices.
The SPY, which tracks the S&P 500, could benefit from the Federal Reserve's potential rate cuts. Lower interest rates generally support higher stock prices by reducing borrowing costs and encouraging investment. Harker's emphasis on a gradual and predictable approach may provide stability and confidence to the market, potentially leading to a positive impact on SPY.
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